Double blow for savers with annuity sale U-turn and tax relief threat

Savers have been hit by a double blow to their pensions. Last night the Treasury U-turned on a promise to allow retired savers to cash in their annuities. Meanwhile, politicians are being lobbied heavily to hack back pension tax relief for middle-class workers who are in their 30s and older.

Until last year, most people bought so-called annuities when they retired. These complicated insurance deals turn a pension pot into a guaranteed income for life.

ASK TONY: Axa said it won’t pay for trip lost to cancer shock

I booked a family holiday to celebrate my 70th birthday but was forced to cancel it a few weeks later because my husband was diagnosed with incurable stomach cancer. My insurer, Axa, was very sympathetic and told me I'd be able to claim for the whole trip. I provided evidence and when I phoned I was told everything was fine.

GB Energy Supply is increasing its variable gas and electricity deal to £1,060 a year, up from £820 with effect from November 13.

It means holidaymakers going away for more than a few days will have to pay to check in for their return journey before they leave or find an internet connection abroad.

The first shot comes in less than two weeks' time, when Santander halves the rate on its popular 123 account. Halifax, TSB and Lloyds have all said they'll be joining it early next year.

A report by the Care Quality Commission last week found services for the elderly were nearing breaking point and warned of a wave of home closures if staff and funding gaps are not filled.

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FTSE LIVE: Footsie stuck in the red as company earnings fail to impress and UK

The UK is set for another busy session on the data front, following yesterday's inflation numbers. UK unemployment and wages are expected to have held firm in the three months to August. On the markets there is further evidence of a slowdown in the London property market, after estate agent Foxtons said sales fell by a third to £12.2million, for the three months to the end of September.

Foxtons said fewer home sales meant revenues declined 34 per cent to £12.2million in the three months to the end of September.

Scottish Power, which is owned by Spanish giant Iberdrola, has awarded £150million of contracts to build the foundations of a £2.5billion wind farm off the coast of East Anglia to a shipyard in Spain.

Tesco has grown its share of the grocery market for the first time in five years as its turnaround under boss Dave Lewis takes shape.

The labour market remains strong but the jobless total rose by 10,000 in the quarter to August to 1.66 million - the first jump since the turn of the year.

The enduring legacies of Gordon Brown and Ed Balls' sojourn at the Treasury were the decisions to free the Bank of England from political control and to keep the UK out the euro.

Savers see returns slashed as inflation rises to highest in two years

The consumer prices index rate of inflation rose to 1.0 per cent from 0.6 per cent in August, meaning that savers need an account paying more than 1 per cent to earn a real return on their deposits. With only the very best easy access accounts paying just 1 per cent, and fixed rate accounts slightly more, most nest eggs around the country are now shrinking rapidly and the best deposit accounts are making a meagre, barely noticeable return.

Instead of reducing rates by minuscule amounts, building societies are removing their best deals from sale. The latest to disappear is the Hinckley & Rugby notice account which paid 1.2 per cent.

Netflix added far more customers than forecast in the last three months thanks to success of new shows such as Luke Cage and Stranger Things, developed by the American firm.

How pensions work: Your essential guide to retirement saving

Making the most of a pension is your best chance of securing a decent income when you retire. After you finish working, how will you be able to afford to live if you don't plan ahead? The good news is that pensions have got much better and starting early can really pay off. We explain what you need to know.

The Government came 'very close' to dropping the current pension tax relief system in favour of the 'absolute disaster' of everyone saving for retirement into Isas, reveals Lady Altmann.

The proposals would have allowed as many as five million retirees with to sell their pension incomes in return for a lump sum. The move would have been a lifeline for savers trapped for life in poor-value deals.

Storage hunter Jesse McClure on auction tips and British Treasure, American Gold

We speak to former Storage Hunter Jesse McClure who is about to launch a new UK TV show in the latest of our regular 'a coffee with...' series. The American reality TV star has been a huge hit in the UK, thanks to the US show on channel Dave in which he blindly bids on storage containers and its contents in the hope of finding hidden gems.

A typical property in Britain added £3k in value in August alone despite worries over the potential impact of the EU referendum vote, data from the Office for National Statistics shows.

The minimum spend to receive a free newspaper at the upmarket British supermarket will double to £10 from November 1. Customers have reacted with fury after hearing of the change.

The price of fuel has jumped by as much as 1.4% in a week

The AA said car drivers are having to spend £6.67 more than they did in March 2016 each time they fill up - that works out at a £26.68 increase to monthly bills for a family running two petrol cars.

The ABI piled pressure on the Government to produce a consultation paper setting out how to implement changes to crackdown on fraudulent claims.

A scathing report from the Transport Committee roasted the carmaker for showing 'a cynical disregard for emissions limits which exist to protect human health from dangerous pollutants'.

Can I pay top-up to get full new state pension? Steve Webb replies

Former Pensions Minister Steve Webb is This Is Money's Agony Uncle. He is ready to answer your questions, whether you are still saving, in the process of stopping work, or juggling your finances in retirement. This week, he replies to a former civil servant who wants to pay more to 'contract in' and get a higher state pension.

However, around 21 per cent said they were not saving a penny for their children, with the majority admitting that they could not afford to do so, according to research by Nationwide

First Direct has almost doubled its maximum personal loan limit from £30,000 to a whopping £50,000 - the largest unsecured loan amount on the market.

How close can you get to a taking out a mortgage online?

Getting a mortgage remains an arduous and paper-heavy task, despite the technology changing our everyday lives. So why isn't it easier to get a mortgage online - and just how far can you take the process? We spoke to borrowers, brokers and two cutting edge mortgage start-ups to find out.

The average price paid for the top five most expensive sales fell 25 per cent from £22million to £16.3million in the last three months, according to the figures by London Central Portfolio.

House prices have risen, new figures from Rightmove suggest - but it said the regions have fragmented into buyers' and sellers' markets.

MARKET REPORT: No hiring freeze as recruitment firm Hays shakes off Brexit worries

Hays said companies were cautious and larger firms were controlling costs. Net fees from the UK part of the business fell 10 per cent in the three months to September 30. But they grew 30 per cent and 33 per cent respectively in the Asia Pacific and Continental Europe and Rest of the World regions.

Chief executive Christopher Bailey described the past six months as 'challenging' while finance director Carol Fairweather said a £20million cost-cutting plan was under way.

The online fashion retailer saw 9,200 brides walk down the aisle in one of its ivory or white gowns which cost between £120 and £230.

Peston's 2008 book Who Runs Britain? contains a revoltingly hagiographic chapter dedicated to Green's prowess. Sample platitude: 'Probably the greatest retailer of his generation.'

Investment banks wrongly favour large clients and manipulate league tables when helping companies list on the stock market, the City watchdog has said.

Stars of the cult hit film Spinal Tap sue media giant Vivendi over £112m payday they never

Co-writer Shearer, 72, who played bassist Derek Small in the film (pictured far left), now voices characters such as Ned Flanders and Principal Skinner in US cartoon series The Simpsons. He accused Vivendi of engaging in 'fuzzy' accounting through its subsidiaries Universal Music Group and Studio Canal.

The Newcastle-based builder said it will pay a dividend of 108p a share, up from 77p last year, after annual profits soared 40.6 per cent to £497.9m.

The financier's investing and lending division put in a particularly strong performance while the American economic recovery gathered pace, with revenues more than doubling.

The Irish carrier blamed an 18 per cent fall in the value of sterling since the Brexit vote as it cut its annual earnings forecast by 5 per cent.

According to Kantar Worldpanel, sales grew 1.3% year-on-year in the 12 weeks to 9 October, leaving it with with 28.2% of the UK grocery market - up from 28.1% a year earlier.

Foreign bidders strike while pound is weak to buy British classic cars

H&H; Classics said its recent car auction at the Imperial War Museum 'brought in additional new foreign buying interest' as overseas investors jumped at the opportunity to buy. Among ten E-Types included in the sale, pictured, was a barn-find 1964 3.8-litre Jaguar E-Type Coupe, centre, that sold for double its estimate.

Want to sell your vehicle quicker and achieve the price it warrants? Fine tuning your online advert using this 10-step guide could have a massive impact.

Mini confirmed its first step into the hybrid market with a preview of the second-generation compact SUV that's due in 2017. It will be capable of driving at speeds of up to 78mph in pure-electric mode.

Should everyone pay the same flat tax rate or should the rich pay more?

In some societies, everyone has paid the same flat rate of tax. Meanwhile after World War II the richest paid a 90 per cent tax rate. So how do we decide how much tax the richest and poorest people should pay? On this episode of The Big Money Questions, professor of politics at New York University David Stasavage explains the three different systems that are considered by some to be fair. Where do you fit in the debate?

As Vodafone braces itself for a mega fine from Ofcom, we report how it wants to charge a crane firm £53,000 to break free from its Vodafone contract early.

Despite Government promises to make fast broadband a legal right, many families are still waiting weeks for internet access when they move home. Lucy Sims waited seven weeks.

After Tesco and Unilvever's Marmitegate should investors stick with supermarket shares?

Supermarket giant Tesco scored a PR victory last week in the Marmitegate spat with consumer brands titan Unilever, but investors need to weigh up just how the falling pound will hit supermarkets and other retailers, say experts. While the weak pound is good for some, the flip side is pressure on import prices and there will be more spats like Marmitegate. So what does that mean for investors in retailers?

Email from the taxman is Gateway to disaster, finds TONY HETHERINGTON

Last year I received an email, apparently from Revenue & Customs, saying I was due a tax rebate of £193, and to receive it I had to set up a Government Gateway account on the internet. I did this, and finally received a refund cheque. This year the same thing happened, and I was told by email that I was owed £221.58, but this time no cheque has arrived. I tried phoning the tax office, but the person I spoke to said it never contacted people by email. It was therefore a scam.

Npower is chasing me for my husband's bills even after he left

My husband of 30 years left the marital home in 2013, leaving debts unpaid. Utility bills were all in his name, and in March that year I contacted all the companies and set up new accounts in my name. I have fought Npower ever since over his unpaid bills of £971 for electricity and £544 for gas. I endured Npower's complaints procedure, to no avail. Endless debt recovery firms have written to me, but have backed off when I have explained the facts.

How LOW can it go? The winners and losers in the pound crisis

Sterling has crashed to a 31-year low against the dollar. Sally Hamilton identifies the losers - and winners - from this currency crisis. Families heading abroad this half-term will feel the squeeze on their spending money. Most products will cost more. The higher prices in shops means the pound in your pocket - and interest on savings accounts - will be worth less. Michael Rimmer and Sophie Marchant (pictured) bought dollars for their holiday before the referendum.

Holidaymakers at airports being offered parity against the euro and long-time lows against the dollar could be heard cheering from miles away. But not those watching their pensions and ISAs.

Overseas suppliers who provide the international products we all buy in huge quantities will all be looking for price rises.

Major car makers have been hiking prices in recent months and there are fears further rises could follow. The cost of a Ford Fiesta now starts at £13,545 - a rise of £200.

Readers share their experiences as mystery shoppers

Our report last month on mystery shopping - people going undercover to check on the quality of the service offered by retailers - provoked a huge response from readers. TOBY WALNE, an erstwhile 'mystery shopper', shares their experiences, good and bad.

JEFF PRESTRIDGE: Our pensions don’t need any more tinkering

Over the past few days, we have learnt that a document has been circulating among Government Ministers arguing for a radical overhaul of pension tax breaks. Out would go the present system that gives the biggest tax breaks to higher and additional rate taxpayers who currently enjoy 40 and 45 per cent tax relief on contributions.

As much as 40 per cent work 36 hours or more per week, according to research by Nationwide Building Society.

Official figures showed construction output fell 1.5 per cent in August - putting it on course to shrink in the third quarter of the year following a 0.1 per cent contraction in the second quarter.

Bothies, yurts, sheds and treehouses: Can garden hideaways add value to your property?

Although man-caves are considered a modern phenomenon, Tom Williams of YOUhome estate agency in Bournemouth believes they're nothing but a new spin on an old theme. 'In Edwardian times, the head of the household would have retired to the drawing room with a cigar and brandy,' he says. 'Today's stressed dads go to their man-cave with their iPads.'

Friends of Philip Hammond (pictured with Prime Minister Theresa May) fear that, at the age of 60, he will walk out of the Government over a 'hard' Brexit rather than stifle his opposition.

This week, Midas runs the rule over healthcare firm Spire. Meanwhile, the Sunday Telegraph looks at online fashion company Asos and the Sunday Times takes a look at Shell.

MIDAS SHARE TIPS: Why cutting edge Spire Healthcare deserves a 'buy' treatment

From breast augmentation (£5,100), vasectomy reversal (£3,225) and gastric bands (£6,350) to eye bag removal (£2,600) and hip replacements (£13,276), there is a world of opportunity from Spire's growing list of off-the-shelf surgery to whet the interest of consumers and investors alike. Over the past 12 months, Spire has built the list of guide prices from a handful of options to 75 procedures from what some may frankly consider frivolous (facelift at £4,100 and nose job at £4,724) to the more serious.

Garrett Fish runs the fund with Eytan Shapiro. Fish manages holdings in large companies while Shapiro is responsible for the trust's smaller company holdings.

Investors who followed Midas's tip last September to buy shares in Cluff Natural Resources have endured a brutal year. We tipped the stock when it stood at 3.625p.

Driving home an investment: Women are fuelling a classic car sales boom, says RAY MASSEY

The classic car market is now attracting younger, financially savvy women defying falling savings rates and plummeting annuity rates on their pension pots. Over the past two years, the number of female classic car owners has risen by 40 per cent, with female customers now accounting for 11 per cent of the market, says new research by classic car insurance broker Footman James.

Drivers in England and Wales are failing to notify the DVLA that they have medical conditions such as visual impairments, diabetes, heart conditions and epilepsy.

They're being referred to as 'parked' motorists - those who passed their driving test years ago but have not been behind the wheel since. A new study suggests there are more than 700,000 of them.

Can my parents keep their wills secret from my brother?

My eldest brother wants to see our parents' wills and mine to see what is left to him so he can plan for his future and make sure his children are ok. Both our parents are poorly and I'm their main carer. I still live at home and dropped my hours so I can do more for them. I do not have a pension so mum and dad have made sure that the house comes to me.My other brother is all for it but the other thinks he should get his share and if he didn't like what's in the will he wants to change it.

Our landline hasn't been working for the past five weeks, but as I am currently recovering in hospital it is the only way my wife, aged 73, can contact me.

Santander has revamped its credit card line up after withdrawing its popular 123 Credit Card, but is the replacement All in One card any good?

Fidelity Special Situations Alex Wright: I've bought firms with pension deficits

Would you invest in Sports Direct in the current environment, or buy into a company with a significant pension deficit? Many would steer clear of these scenarios for fear of getting their fingers burnt, but fund manager Alex Wright purposely looks for companies going through a tough time

The EY Item Club will say tomorrow that surging inflation will hit the UK economy, alongside a further drop in investment.

Fidelity European Values invests in companies headquartered in Europe. Manager Sam Morse is focused on firms which grow their dividends and invests for the long term.

Can I be fined for not insuring motorhome parked on my property and not driven?

I have received a £100 fine for not having insurance on a motorhome I'm currently not using. I've been storing the vehicle on my property, in an off-road parking space with no intention to drive it for six months. I understood that human rights give you the right to enjoy your property without harassment, so why am I being fined for keeping a vehicle on my own land?

We find out how Williams uses F1 know-how to make supermarket aisles warmer, military tanks less susceptible to explosions and find more efficient ways to produce washing powder.

50 ways to save money....

To clear the average national household debt of ?13,000 at 6% interest with a monthly repayment of ?100 will take around 17 years. There are, however, plenty of simple ways to make significant savings on your regular spending that could clear your debt - or boost your savings - in less than a year. This is Money's top 50 - updated - money-saving tips may appear light-hearted but are deadly serious.

Pick the best (and cheapest) investment Isa platform

Choosing the right DIY platform is crucial but a wealth of choice and changes to charges have left many investors scratching their heads. We pick some of the best. We also highlight why investing in an Isa makes sense, as it should protect your hopefully growing investments from tax forever.

In this low-income world it can be hard to find mainstream investments paying a significant yield. Stifel has compiled a list of 19 investment trusts with a yield of more than 4 per cent.

L Board sign on the rear of a blue saloon car , UK

If you are new to investing then the huge number of funds and investment trusts on offer can be confusing. Fortunately, This is Money's experts have some ideas to get you started.

Income investing: Dividends can deliver both a healthy boost to long-term growth and a way to earn from your investments.

Income investing can let you draw on your portfolio or reinvest dividends to build solid growth over time. Our experts give their fund and investment trust recommendations.

On the up: Emerging markets such as Brazil are where much of the world's growth is expected to be over future years.

If you're looking to add some flair to your investing Isa with emerging markets, This is Money's experts have some ideas to get you started

Handy Brexit table explains the options for the UK's exit from the EU

Despite endless media coverage of the political wrangling and financial speculation, the average Briton can be forgiven for remaining confused about what 'soft' and 'hard' Brexit really mean. About the difference between the 'Norway model' for the UK's post-Brexit relationship with the UK and the 'Swiss solution'. But a clever table put together by HSBC in a report called 'Is Brexit Getting Harder?' cleaves some clarity from the murk.

It would have been nice to have a plan. Instead, after the Brexit vote we were left scratching our heads. But now it's time for some answers on trade and what we mean to the EU.

Pensions Road Sign against threatening clouds

We tend to put ambitious targets on our hoped-for income in retirement and then underestimate how much we will need to set aside to achieve that. So how much should you save?

When will UK interest rates rise?

An interest rate cut before the end of the year looks less likely following the plunge in the pound. However, the Bank of England has indicated that higher inflation driven by rising import costs won't make it lift rates.

What next for mortgage rates?

Several months after the Bank of England slashed the base rate to 0.25 per cent and lenders are still cutting mortgage rates on almost a weekly basis - but how low can they really go? The experts say not a lot lower and it's likely that if you get a mortgage at the moment, it's going to be a pretty cracking deal. 

Ten tips for buy-to-let

For many buy-to-let looks an attractive income investment in a time of low rates and stock market volatility. Climbing house prices, rising rents and improving mortgage deals are tempting investors - although they will need a big deposit. Read This is Money's top ten buy-to-let tips

TIPS, TOOLS AND HELP FOR LANDLORDS

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Compare your pay to the UK average across 350 professions

Musicians have seen pay rises averaging nearly 20 per cent in 2015, while cleaners are getting 17.8 per cent more, and window cleaners 12.3 per cent. Artists in general are earning 14.6 per cent more in 2015 than 2014, according to the huge annual data dump of pay scales by the Office For National Statistics highlights.

Premium Bonds winners

October 2016
Prize value Winning bond No. Area
£1,000,000 276AV278339 Essex
£1,000,000 215XY865796 Staffordshire
£100,000 259ZN414297 Dorset
£100,000 141CJ661353 Derbyshire
£100,000 138HB024467 Hampshire and Isle of Wight
£50,000 2VR747799 Greater Manchester
£50,000 241QS845329 Hertfordshire
£50,000 206GW792012 Sheffield
£50,000 103WK587629 Reading
£25,000 92NE335986 Overseas
£25,000 86GW534216 Cheshire West and Chester
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